JOHNSON TRAVEL

TRAL BALANCE

DECEMBER 31,2005

CASH 1300

A/R 6600

SUPPLIES 2300

PREPAD RENT 1600

FURNTURE 36000

ACCUMULATED DEPRECIATION(FURNITURE) 4900

A/P 4500

UNEARNED SERVICE REVENUE 600

CAPITAL 26000

WITHDRAWALS 29000

SERVICE REVENUE 106000

DEPRECIATION EXPENSE 2300

SALARY EXPENSE 39900

RENT EXPENSE 20000

SUPPLIES EXPENSE 2900

TOTAL 141900 141900

Question:What adjusting entry will jonhson make on this transection?

a.Depreciation on furniture for the month. The estimated useful life of the furniture is 2 years.

b.On december 1 the business moved into a new office and paid the first months rent as advance.Prepaid rent expired during the month.

c.Service revenue of 400 dollars were earned during the month from the services performed for clients who had pai,d in advance.

d.The salary expense is 225 dolars per-day and the business pays employees every Friday (weekly payroll is from Monday to Friday) Th,is year december 31 falls on a monday.

e.Supplies on hand at Dec. 31 400 dollars.